Technical Analysis: Techs Break Out

The Nasdaq (first chart below) is showing surprising strength here, pushing back into its old December-February trading range, a level that repelled the index two weeks ago. Now can the techs build on those gains? We think the market stands a good chance of being disappointed by the Fed tomorrow, but there is also a lot of bearish sentiment supporting the market here. The next resistance levels for the Nasdaq are 2420 and 2430, and support is 2400, 2390 and 2385. The S&P (second chart) is also breaking out here. 1416, 1420 and 1424 are the next resistance levels, and support is 1406-1407 and 1397-1400. The Dow (third chart) is lagging a little here. Resistance is 12,350, and support is 12,190-12,200. Bond yields (fourth chart) remain range-bound, with a bias to the downside as long as they stay below 4.6%.

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